By Mackenzie Tatananni
Poseida Therapeutics stock skyrocketed Tuesday after Roche closed a deal to acquire the California-based biopharmaceutical company.
Shares of the cell-therapy company, which develops off-the-shelf treatments for cancer, were up 228% to $9.37. The stock was on pace for its best one-day gain on record, according to Dow Jones Market Data.
Roche, a Swiss healthcare company, agreed to pay $9 a share in cash at closing. Poseida stockholders also will receive a non-tradeable contingent value right for up to $4 per share based on "achievement of specific milestones," boosting the value of the deal to around $1.5 billion.
The transaction, which is expected to wrap up in the first quarter of 2025, will help Roche "drive further progress in allogenic cell therapy, " according to Chief Medical Levi Garraway.
The deal builds on the companies' "joint progress" to create groundbreaking cell therapies in oncology, immunology and neurology," Garraway added.
Poseida Therapeutics, a small-cap company with a market cap of $279 million, has developed a system to develop and manufacture CAR-T therapies, which alter a patient's immune system cells to attack cancer cells.
In a statement announcing the acquisition, Poseida President and CEO Kristin Yarema cited "compelling interim clinical data" for one treatment in patients with blood cancer.
"We have worked closely with Roche through our collaboration focused on hematologic malignancies, and we are excited to join Roche to work as colleagues together across our pipeline and future programs," Yarema said.
Roche's "global capabilities in stage development and commercialization" are expected to bring life-changing treatments to patients worldwide, Yarema added.
Poseida Therapeutics is just the latest acquisition for the multinational biotech. Also this year, Roche snapped up point of care technology from LumiraDx and investigational cancer drugs from Regor.
Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
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November 26, 2024 11:10 ET (16:10 GMT)
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